Kathmandu, March 6
China Three Gorges Corporation, which signed a joint venture agreement with Nepal Electricity Authority to develop the West Seti Hydro Project in November but later objected to the terms of the deal, has hinted that it is still interested in the undertaking.
This comes after the Investment Board of Nepal wrote to Three Gorges a few days ago saying that past agreements could be cancelled if the Chinese company is no longer interested in the project. Three Gorges, after receiving the letter from IBN, sent its representatives to hold talks with the board on Sunday and the NEA on Monday.
NEA Managaing Director Kulman Ghising said that Three Gorges had been demanding that the power purchase rate for the project be revised. He said that Three Gorges has now hinted that it would take up the 750 MW reservoir-type project even without a revision to the rate.
According to the NEA, the power utility has offered Rs 12.40 per unit of electricity during the dry season and Rs 10 during the wet season. ”
Meanwhile, the IBN has asked Three Gorges to present a work plan for the project. “We have asked them to present their workplan. If their plan is not convincing, we will scrap past agreements reached with the company,” an IBN source told Onlinekhabar adding that it has been six years since Three Gorges was issued a license to work on the project.
Sources say that Three Gorges sent its representatives to Kathmandu to lobby for better rates for West Seti. The company believes that the Left government could listen to its demands and hike the power purchase rate.
